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Onsite wages are on an all-time high, visas are being rejecting like never before, and the political environment in the US is something nobody would be unaware of; all these situations combined have forced India's IT firms including Infosys, Wipro and TCS to depend on external subcontractors more than ever before, for their outsourcing requirements. 
 
The financial reports of financial year 2015-16 show that these tech giants spent more amount on parcelling off customer projects to smaller vendors as compared to earlier years. Moreover, most of the subcontracting work for these companies took place onsite in the US, which resulted in higher expenses. 
 
Figuratively, the last FY saw TCS spending Rs 7,823 crore on external consultants' fees, as compared with Rs 6,116 crore the year before that. 
 
Talking of Infosys, it spent Rs 4,417 crore on technical subcontractors in FY 16, as compared to Rs 2,909 crore in the previous year. 
 
Wipro, similarly, spent up to Rs 6,486 crore on subcontracting expenses, as compared to last FY’s Rs 5,208 crore. 
 
"What is happening is that subcontracting expenses for IT firms are going up, largely due to factors such as onsite reduction due to attrition and a shortage of skills. So these companies have no choice but to rely more on subcontractors, even though they are talking of gradually phasing out the reliance on subcontractors," an analyst at a multinational brokerage firm told ET on the condition of anonymity. 
 
 
<a href="http://southernsydneyitservices.com.au/wp-content/uploads/2015/05/IT-Outsourcing-Sutherland-Shire-Sydney.jpg">Image source</a>

Indian IT firms are spending more than ever on external subcontractors

<ul><li>Global IT majors will have to bear the brunt of a strong US dollar, despite expectations of revenue growth.</li><li>Back home, Indian IT giants are bearing the brunt of concerns of a potential recession in the US and Europe.</li><li>Several economists have predicted that the US, the world’s largest economy, could slip into recession in the near term.</li></ul>While <keyword id="6357549" type="General" weightage="20" keywordseo="indian-it-companies" source="Orion">Indian IT companies</keyword> are worried about a potential slowdown due to recession, their global counterparts have already started factoring in the impact on their profitability and revenues because of it. The fact that two overseas IT giants – <keyword id="6370971" type="General" weightage="20" keywordseo="accenture" source="Orion">Accenture</keyword> and <keyword id="28721" type="General" weightage="20" keywordseo="cognizant" source="Orion">Cognizant</keyword> – have lowered their growth numbers says a lot about the bleak outlook for the sector because of rising inflation and currency headwinds. Accenture cut earnings per share for 2022 to $10.61-10.70, compared with its previous estimate of $10.61-10.81. The Russia-Ukraine war also had an impact on its earnings as it decided to close down its Russian business. The company said it expects a negative foreign exchange impact of 4.5% in fiscal 2022, worse than its previous forecast of a 3% forex hit, as per a <a href="https://www.reuters.com/business/accenture-beats-quarterly-revenue-estimates-2022-06-23/">Reuters</a> report. Note that Accenture makes more than half of its revenue from outside the US. A strong US dollar means weakness in other currencies – this has an adverse impact on companies with exposure to currencies other than the dollar. Confirming the bleak environment to make money, even Cognizant lowered its revenue guidance to 9-11% in constant currency terms as compared to 8.5-11.5% earlier. “Results were strong though the focus of the Street has shifted to impact on business in a recessionary environment,” said a report by Kotak Institutional Equities. A recession in the US and Europe will impact Indian IT companies directly Stocks of Indian IT companies have seen a major correction this year, as a surging inflation and the rising interest rates reduce the spending power of their clients in the US and Europe. Post the breakout of the Covid pandemic, Indian IT giants TCS, Infosys and Wipro reported record earnings as their clients rushed to digitize their operations to meet their growing IT needs. Now, it looks like the era of record growth is over, leading to sharp corrections in stock prices. <div type="image" title="IT firms top 5 companies" height="900" width="1200" msid="92437564" hostid="261" sizebytes="55924"></div> "The stock price correction (in Indian IT firms) has largely been due to de-rating of valuation multiples, as earnings estimates have largely remained intact or seen minor downgrades. The reasons for this sharp derating, as we mentioned above, are largely related to the global macro environment,” said a report by Phillip Capital. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/may-is-the-first-month-of-2022-when-startups-raises-less-than-2-billion/articleshow/92432430.cms">May is the first month of 2022 when startups raises less than $2 billion</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/mm-shares-hit-52-week-high-on-the-back-of-rural-revival-more-good-news-in-store/articleshow/92432812.cms">M&amp;M shares hit 52-week high on the back of rural revival – more good news in store</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/okinawa-electric-scooter-showroom-in-mangaluru-catches-fire-several-scooters-destroyed/articleshow/92433747.cms">EV fire – Okinawa electric scooter showroom in Mangaluru catches fire, several scooters destroyed</a>

Accenture, Cognizant could see revenue growth but a strong US dollar could spoil the party

British Prime Minister <keyword id="6430216" type="PERSON" weightage="20" keywordseo="David-Cameron">David Cameron</keyword>’s move to bring down net <a href="http://www.businessinsider.in/Getting-a-British-visa-wont-be-so-easy-for-Indians-and-other-immigrants-from-now-on/articleshow/47630590.cms">migration</a> in UK from outside the European Union has begun to worry <keyword id="398704" type="UNKNOWN" weightage="20" keywordseo="Indian-IT-firms">Indian IT firms</keyword> like <a href="http://www.businessinsider.in/searchresult.cms?query=TCS">Tata Consultancy Services</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=infosys">Infosys</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=wipro">Wirpo</a>. 
 
The Indian IT industry is already grappling with <a href="http://www.businessinsider.in/86-Indians-in-computer-jobs-get-H-1B-visas/articleshow/48453766.cms">visa issues</a> in the US. 
 
Now the UK, which is the second largest market for <a href="http://www.businessinsider.in/searchresult.cms?query=Indian+IT+companies">Indian IT firms</a>, also wants to bring reforms in its policies like limiting migration to 100,000, increasing minimum salary threshold for skilled workers, etc. 
 
The UK accounts for about 18%, or about $18-$19 billion, of export revenue annually, according to industry body Nasscom. 
 
According to Back-The-Mac, a group that campaigns against the use of <a href="http://www.businessinsider.in/searchresult.cms?query=ICT">ICT</a> visas, the number of Indian workers on ICT visas in the UK was the highest at 36,762 as of December 2014. 
 
Meanwhile, Indian IT companies fall under UK's tier-II visas that pertain to skilled workers from outside the UK. 
 
The Migration Advisory Committee (MAC) has asked for suggestions from partners to help it formulate a response to the review of tier-II visas. 
 
Among the questions asked is the impact of putting tighter ICT "restrictions on the IT sector specifically" and the impact of the use of ICT provisions in the IT sector on existing UK companies and resident workers. 
 
"The most worrisome proposal is the restriction on numbers of tier-II visas as that will reduce deployment agility. The second one is the increased cost due to the minimum wage and additional employer levy which will increase the cost of delivery and adversely affect market competitiveness for Indian companies," said Sanjoy Sen, doctoral research scholar, Aston Business School, UK. 
 
However, Nasscom said there will be no impact on net migration in the UK because of the ICT visa, which is similar to the L-1 visas used in the US. 
 
(Image: Indiatimes)

After the US, it’s UK which is sending jitters to TCS, Infosys, Wipro

In a bid to win the intense war for large deals, India's top outsourcing firms like <keyword id="6354512" type="CITY" weightage="100" keywordseo="Infosys">Infosys</keyword> and <keyword id="10862" type="CITY" weightage="100" keywordseo="Wipro">Wipro</keyword> are more and more willing to make large upfront payments, as they bid for large deals with assured revenues. 
 
These large sums are being offered despite India's $160-billion IT industry facing its slowest revenue growth in ten years. 
 
Executives familiar with these plans told ET that in the past, Indian outsourcing firms have steered away from large deals, which cross over $500 million. However, the trend seems to be changing. 
 "There are different kinds of deal structurings that happen -- if there is an asset that gets transferred by the customer, then we may make an upfront payment for that. It's not just quantity of revenue, but it's about quality of revenues," Wipro CEO <keyword id="3129799" type="UNKNOWN" weightage="100" keywordseo="Abidali-Neemuchwala">Abidali Neemuchwala</keyword> had said earlier. 
 Similarly, Infosys CEO <keyword id="6369763" type="PERSON" weightage="100" keywordseo="Vishal-Sikka">Vishal Sikka</keyword> said that even as Infosys does not make such investments with every large deal, there are some deals that require such payments, and they can be rightly considered. "Only when it comes to the quality of the work we're getting, and the nature of the work we're getting," said Sikka. 
 
Globally, however, this is not a new phenomenon, with companies like IBM, HP and Accenture following this trend for years now. With time, Indian software exporters like Wipro and HCL Tech too jumped on to this practice. 
 
For these Indian firms, this aggression has finally paid off, with Infosys winning at least 10 large deals with total contract value of over $50 million in the past few quarters, which is more than any other top-tier rival. 
 
<a href="http://economictimes.indiatimes.com/thumb/msid-19188128,width-640,resizemode-4/case-of-infosys-wipro.jpg">Image source</a>

Following the global suit against TCS, Indian IT firms are making huge bids for mega deals

<ul><li>US-based IT services company <keyword id="28721" type="General" weightage="20" keywordseo="cognizant" source="Orion">Cognizant</keyword> reported a healthy growth in revenue and profit for the March quarter, beating analyst expectations.</li><li>However, it’s the attrition rates that is one of the key takeaways from the company’s earnings.</li><li>Cognizant reported a decline in attrition rates to 26% from 31% in the previous quarter, and this could be a sign of things to come for Indian IT giants struggling to retain their employees.</li></ul>Nasdaq-listed Cognizant’s March quarter net profit for March quarter grew 11.5% on year to $563 million along with 10.9% increase in constant currency revenue growth. The company follows a January to December accounting year. While Cognizant’s earnings beat analyst expectations, the company made a downward revision in its revenue guidance. Cognizant’s revenue guidance came down marginally as now it expects full year 2022 revenue to grow 9%-11% in constant currency terms as compared to 8.5%-11.5% guided earlier. On the bright side, its <keyword id="505875" type="General" weightage="20" keywordseo="attrition-rate" source="Orion">attrition rate</keyword> fell down to 26% from 31% in the previous quarter, and this could be a silver lining for Indian IT majors <keyword id="6357150" type="General" weightage="20" keywordseo="tcs" source="Orion">TCS</keyword>, <keyword id="6354512" type="General" weightage="20" keywordseo="infosys" source="Orion">Infosys</keyword> and <keyword id="10862" type="General" weightage="20" keywordseo="wipro" source="Orion">Wipro</keyword>. “Thanks to our talented employees, we delivered on our first quarter commitments in what is an intensely competitive global labor market,” said Brian Humphries, chief executive officer in a quarterly release. “While the economic backdrop is uncertain, we remain optimistic about the demand outlook for our solutions,” he added. Despite the volatility in the employment situation in the US, Cognizant managed to bring down its attrition rates in the March quarter. <div type="image" title="infosys, cog, tcs attrition" height="900" width="1200" msid="91334259" hostid="261"></div>“While we made sequential progress reducing voluntary attrition for the second consecutive quarter, we anticipate attrition will remain elevated for the full year and will increase in the second quarter, reflecting seasonality,” Humphries <a href="https://timesofindia.indiatimes.com/business/india-business/cognizant-reports-10-9-revenue-growth-trails-peers/articleshow/91332533.cms">reportedly</a> said in the earnings call. As the attrition rates came down, the company added less number of employees i.e 9,800 on a quarterly basis in Jan-Mar as against 12,200 in the previous quarter. On a yearly basis, Cognizant added 43,900 employees, which is way less than any of the Indian IT peers and less than half of that TCS hired in 12 months. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Indian IT peers </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Employee addition in FY22 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total employees as of March, 2022 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,03,000 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6 lakh </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">85,000 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.14 lakh </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">45,416 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.43 lakh </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cognizant </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">43,900 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.40 lakh </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[]]></cdata></div> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/second-day-to-subscribe-to-lic-ipo-post-poor-demand-on-day-1-and-gmp-falls-to-65/articleshow/91324706.cms">LIC IPO: Second day to subscribe to the issue post poor demand on Day 1; GMP falls to ₹65</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/reliance-jio-could-post-a-blockbuster-5000-crore-profit-in-the-march-quarter-say-analysts/articleshow/91316654.cms">Reliance Jio could post a blockbuster ₹5,000 crore profit in the March quarter, say analysts</a>

Cognizant’s latest earnings have a silver lining for Indian IT majors TCS, Infosys and Wipro

<ul><li>Valuable Indian information technology stocks have tumbled heavily in the last one month, falling up to 18%.</li><li>While spending on digital transformation will continue from large enterprises, the overall growth rate in tech spending could decelerate as companies feel the pressure of inflation on their toplines.</li><li>The Nifty IT index has fallen two times more than the benchmark index Sensex and Nifty 50 in the last one month.</li></ul>Indian information technology stars’ dream run in the post-pandemic era could be slowing down, with the Nifty IT index falling twice as much as the benchmark Sensex and Nifty 50 in the last one month. Nifty IT index slipped over 13% while the benchmark indices have fallen over 6% during the one month period. One of the reasons for the sharp fall is because of the massive selloff in the US markets, which is where most of our tech majors’ revenues come from. Currently, the <keyword id="46964" type="General" weightage="20" keywordseo="it-sector" source="Orion">IT sector</keyword> is facing a challenging macro environment including <a href="https://www.businessinsider.in/finance/news/indias-central-bank-confirms-another-rate-hike-is-coming-in-june/articleshow/91739640.cms">rising borrowing costs</a>, making it difficult for companies to spend more on digital transformation. Digital transformation spendings could see a slowdown The biggest driver behind IT companies’ record growth in the post-pandemic era has been enterprises enrolling in digital transformation programmes, revamping their IT infrastructure and adopting new technologies. Those days of record growth could be behind us, suggest analysts. “We think enterprises’ willingness to spend on digital transformation will continue, but growth rates on spends are likely to decelerate constrained by revenue and earnings volatility,” said analysts at Nomura. Recently, top US retailers Walmart and Target <a href="https://www.businessinsider.in/retail/news/heres-what-walmart-and-target-are-saying-about-soaring-food-gas-and-labor-costs-and-what-it-could-mean-for-prices/articleshow/91668863.cms">reported </a>poor earnings, hinting at topline troubles in the economy. In fact, FAANG stocks (Facebook, Apple, Amazon, Netflix, and Google) have lost more than $2 trillion in valuation since the beginning of the year. More pain ahead Brokerage firm Nomura Research sees a potential slowdown in terms of revenue growth for IT companies in FY24. It expects tough days ahead for tech spending amid challenging macroeconomics conditions, hawkish US Fed stance to tame inflation and profit warnings by corporates across the globe. JP Morgan downgraded its ratings on TCS, HCL Tech, Wipro, L&amp;T Tech to ‘underweight’ from ‘neutral’ on potential macro slowdown. “Indian IT growth was accelerating till 3Q22 and has begun to slow down from 4Q22, which is likely to worsen into FY23 from tougher comps, supply issues and eventually a worsening macro. With peak sector growth behind, growth deceleration should continue to weigh on sector multiples,” said a report by JP Morgan. It downgraded the IT sector stance to Underweight and target multiples by 10-20%. “Fast changing macroeconomic conditions, hawkish Fed stance to tame inflation through continued interest rates hikes and profit warnings by corporates across the globe seem to suggest tough days are ahead for tech spending, in our view,” said analysts at Nomura. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IT companies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Change in the last one month </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-10.99% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-11.11% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL Technologies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-11.27% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-15.99% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tech Mahindra </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-17.53% </td></tr></tbody><tbody></tbody></table>Source: BSE as on May 25 A study by Nomura reveals that 750 out of 2,000 global companies suggest a material slowdown in the overall financial performance in the upcoming quarters. The brokerage has downgraded some Indian IT company stocks along with target price. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IT companies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nomura rating </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Target price </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Current market price </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">From Neutral to Reduce </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,950 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,165 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">BUY </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,720 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,418 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL Technologies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">From Buy to Neutral </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,100 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹974 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">From Buy to Neutral </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹490 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹446 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tech Mahindra </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,350 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,064 </td></tr></tbody><tbody></tbody></table> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/indusind-bank-has-most-valuable-credit-cardholders-in-india-compared-to-hdfc-sbi-citi/articleshow/91784122.cms">The most valuable credit cardholders are not from HDFC, SBI, Citi or other major credit card companies</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="http://www.businessinsider.in/retail/news/biscuits-ghee-and-hair-oil-to-get-cheaper-after-government-duty-cut-but-after-three-months/articleshow/91784809.cms">Biscuits, ghee and hair oil to get cheaper after government duty cut — but after three months</a>

TCS, Infosys, Wipro and other IT companies' dream run could be over, say analysts

It seems the US government’s imposition of additional fee of up to USD 4,500 for certain categories of H-1B visa for Indians is not going well with many at the <keyword id="6357722" type="COMPANY" weightage="20" keywordseo="silicon-valley">Silicon Valley</keyword>. 
 
Veritas CEO Bill Coleman called for dramatic expansion of the H-1B visa scheme -popular among Indian tech firms. 
 The H1B visa allows US employers to recruit foreign professionals in speciality occupations within the US. However, the <keyword id="396996" type="UNKNOWN" weightage="20" keywordseo="Indian-IT-industry">Indian IT industry</keyword> was affected after the US imposed an additional fee. 
 
Amid this, Coleman said there was a huge crunch of quality IT professionals. 
 
"The entire Silicon Valley believes that the H-1B visa policy needs to be dramatically expanded. We can't hire enough good people. They are just not available here. The salaries here are going through the roof, because everybody is competing to hire from everybody else," said Coleman, who is also a former chairman of Silicon Valley Leadership Group. 
 
Soon headed to India, where Veritas has about 1,700 people working for it with Pune being a major centre, Coleman said he plans to migrate some of his facilities to India from Florida. 
 
"That is a priority," he said. 
 
"In Silicon Valley you go to Apple, Facebook or Google, open their websites, you will find thousands of open jobs. One of the biggest problem here is that everybody is trying to hire from everybody else. As they can't find enough good candidates what they are doing is pushing the salaries through the moon," he said. 
 
Coleman said the number of H-1B visas should be based on market demand and the programme's expansion is one of the top priorities for the Silicon Valley. 
 
Coleman said India, now the fastest-growing emerging economies of the world, offers a "great" and "long term" opportunities for IT firms and he aims to make the best of it. 
 
"We are targeting growth in excess of 40 per cent in our sales in India," he said. 
 
Coleman said Prime Minister Narendra Modi's government has brought "a breadth of fresh air." 
 
"It is not that difficult to do business in India...the regulations have gotten better, but they are not up to the leading free market standards yet. Things are improving under Modi and we are happy about that," he said. 
 
(Image: Thinkstock)

Silicon Valley cannot do without Indians? At least Veritas CEO thinks so

The <keyword id="368921" type="UNKNOWN" weightage="20" keywordseo="US-Citizenship-and-Immigration-Services">US Citizenship and Immigration Services</keyword> (USCIS) has put on hold the <keyword id="4303431" type="UNKNOWN" weightage="20" keywordseo="Premium-processing">premium processing</keyword> of H-1B visas, used mainly by <a href="http://www.businessinsider.in/small-business/companies/Indian-IT-industry-is-going-to-incur-400-million-burden-as-they-will-have-to-pay-4000-more-for-each-H-1B-visa/articleshow/52463993.cms">Indian IT firms</a> and professionals, so that it can focus on the massive number of applications for the <keyword id="455563" type="UNKNOWN" weightage="20" keywordseo="work-visas">work visas</keyword> that <a href="http://www.businessinsider.in/latest/Whether-Trump-likes-it-or-not-US-will-begin-accepting-H1B-work-visa-applications-from-April-1/articleshow/51440316.cms">start from April</a>. 
 
Also read: <a href="http://www.businessinsider.in/change-in-h-1b-visa-rules-might-be-delayed-indian-tech-companies-breathe-sigh-of-relief/articleshow/57667203.cms">Change in H-1B visa rules might be delayed; Indian tech companies breathe sigh of relief</a> 
 
Premium processing means that the application has to be processed within 15 days. USCIS receives <a href="http://www.businessinsider.in/H-1B-Visa-applications-exceeds-limit/articleshow/51811005.cms">200,000 or more</a> H-1B applications in the first week itself, and it gets difficult to process them within 15 days, which is why premium processing has to be held back. 
 
Also read: <a href="http://www.businessinsider.in/trump-in-no-mood-to-spare-immigrants-goes-after-dependent-spouses-of-h-1b-visa-holders/articleshow/57537572.cms">Trump in no mood to spare immigrants; goes after dependent spouses of H-1B visa holders</a> 
 
"I think the other thing to keep in mind is that these visas that they're applying for in April are not available until October. So what we do is we take them in, we process them, we organise them and then when we're ready, we let people file for the premium processing if they think that that's what they need," said Lori Scialabba, acting director of USCIS. 
 
Also read: <a href="http://www.businessinsider.in/h-1b-visa-reforms-half-a-dozen-bills-tabled-to-stop-indian-techies-from-entering-us/articleshow/57558831.cms">Half a dozen bills tabled to stop Indian techies from entering US</a> 
 
"But the visas aren't available until October in any event, so it's really not delaying anybody from getting their visa when they're ready to pick up the visa," she added. 
 
Also read: <a href="http://www.businessinsider.in/Could-You-Answer-These-10-Questions-From-The-US-Citizenship-Test/articleshow/22664532.cms">Could You Answer These 10 Questions From The US Citizenship Test?</a> 
 
It’s not the first time that premium processing has been suspended; this has been done earlier as well. 
 
(Image source: Gadgets Now)

H-1B premium processing put on hold to handle massive work visa applications

<ul><li>Companies usually establish shell firms, which only exist on paper and do not have an office or employees, for the purpose of <keyword id="6355008" type="UNKNOWN" weightage="20" keywordseo="Money-laundering">money laundering</keyword> and <keyword id="6354921" type="UNKNOWN" weightage="20" keywordseo="Tax-evasion">tax evasion</keyword>. </li><li>In 2017-18, the corporate affairs ministry shut down 226,000 shell companies that had not filed tax returns or financial statements for a period of at least two years. </li><li>This year, it plans to shut down an additional 225,000 shell companies while simultaneously working on a definition of what constitutes such a firm.</li></ul>One of the key goals of the current BJP-led government at the Centre is to crack down on tax evasion and money laundering. Shell companies have been among the major casualties of this crackdown, becoming a major focus area for the government soon after demonetisation in November 2016. Indian companies and wealthy individuals usually establish shell firms, which only exist on paper and do not have an office or employees, to disguise the ownership of assets or to transfer funds illicitly and avoid taxes. They are structured in such a way to prevent officials from identifying the actual beneficiaries of transactions. In the previous financial year, the corporate affairs ministry cancelled the operating licenses of 226,000 shell companies that had not filed tax returns or financial statements for a period of at least two years. This year, it planned to shut down an additional 225,000 shell companies. It has reportedly struck off 70,000 such firms in the year so far with another 100,000 expected to bite the dust soon. And now, the <keyword id="44734" type="ORGANIZATION" weightage="20" keywordseo="Indian-Government">Indian government</keyword> has a new strategy to prevent the rapid growth of shell companies: <keyword id="1266896" type="PERSON" weightage="20" keywordseo="geo-tagging">geo-tagging</keyword>. The ministry of corporate affairs is reportedly planning to make it mandatory for companies to geo-tag their subsidiaries or associated entities. By giving the exact details of a subsidiary’s location, regulators will be able to pinpoint a number of different companies in one location. Prior investigations have revealed that companies usually register the location of their shell firms on the same premises as their registered offices. The data on a company’s location will be fed into the ministry’s database, which will easily reveal companies using the same addresses, contact info and common managers. Additionally, the financial accounts of these companies will also be monitored to track drastic swings in revenue and profits. In order to accelerate its crackdown on money laundering, the Indian government is also working on the precise definition of a “shell company”. The lack of a codified definition is proving to be a hurdle to the investigative process. Sharing an address with a subsidiary does not indicate illegal activity. For example, a lot of startups opt to work at the same location. Hence there is a need to identify a uniform set of traits that are common to all shell firms.

You Searched For "Indian IT firm" and got 9 results

Indian IT firms are spending more than ever on external subcontractors

BI India Bureau

Accenture, Cognizant could see revenue growth but a strong US dollar could spoil the party

Bhakti Makwana

After the US, it’s UK which is sending jitters to TCS, Infosys, Wipro

BI India Bureau

Following the global suit against TCS, Indian IT firms are making huge bids for mega deals

BI India Bureau

Cognizant’s latest earnings have a silver lining for Indian IT majors TCS, Infosys and Wipro

Bhakti Makwana

TCS, Infosys, Wipro and other IT companies' dream run could be over, say analysts

Bhakti Makwana

Silicon Valley cannot do without Indians? At least Veritas CEO thinks so

BI India Bureau

H-1B premium processing put on hold to handle massive work visa applications

BI India Bureau

The Indian government is continuing its crackdown on shell firms

Dilsher Dhillon

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